Wrap Around Or Sub To. How To Right Contract
Hi, I am in the process of assigning a contract. The owner will carry 8 months with 10k down. He has exsiting mortgage. Can I still do this through title. Can he carry note on top of current mortgage without it being a problem at title company. We will take home subject to his existing note and get a new loan after rehab. 60 to 70 k equity when done. Have to write this up before closing 2/15. Jim
yes, there can be seasoning issues.
some ways around it are to use a land trust to hide the fact that title has transfered to you, steer your buyers to a lender who doesnt have issues with seasoning.
most conventional banks dont mind as long as you have been on title for 30 days. F.H.A. is 90 days and land trusts wont work.
call some lenders and find out which ones dont require seasoning. those are the ones you will direct all your buyers to.
Thanks!
BrianCharlotte101[ Edited by BrianCharlotte101 on Date 02/01/2005 ]